US Oil Output Slows
The US oil industry could either grow by 1 million barrels per day or 100,000 barrels per day next year. The large gap caused uncertainty as OPEC officials discuss production curbs. Over the past three years, daily production reached nearly 13 million barrels, making the US the largest crude oil producer.
Right now, estimates place global oil need at 1.2 million BPD. An increase of 1 million BDP would satisfy nearly all of that. However, producers have reduced the number of operating drills for a record 12th month in a row. In addition, shale producers such as Pioneer Natural Resources, Range Resources, EQT Corp, and Whiting Petroleum reduced production targets and cut staff. They aim to meet investor demands for higher returns and debt reduction.
Sky To Build New Film Studio
Media giant Sky plans to build a new film studio near their existing studio outside London. The 32-acre building will house Sky, other Comcast owned studios, and third parties. Sky estimates that they will invest nearly £3Bn into the site over the next five years. Overall, the building will provide nearly 2,000 jobs.
Many hit shows, including Game of Thrones and The Crown, were filmed in Britain. Many productions like these proved that US audiences were ready for overseas production. In addition, the new Sky studies are located on land owned by Legal and General, which will fund the development and then lease them back to Sky.
Trump Says Trade Deal Might Have To Wait
President Trump said that a trade deal with China might have to wait for the 2020 election. His announcement deflated hopes for a resolution to a trade war that dented the global economy. “I have no deadline, no,” Trump told reporters in London. “In some ways, I like the idea of waiting until after the election for the China deal. But they want to make a deal now, and we’ll see whether or not the deal’s going to be right; it’s got to be right.”
US stocks sank following his announcement, as well as European stocks and the Chinese yuan. In addition, he said he plans to hit Brazil and Argentina with trade tariffs for “massive devaluation of their currencies”. Investors previously hoped that the US and China would defuse tensions, which has strained ties between the two countries since 2017.
US Threatens Taxes On French Goods
The US threatened import taxes on $2.4Bn worth of French goods, including champagne, cheese, and make-up. They come in response to a new French digital tax that would affect online companies like Google and Amazon. Many European countries have been afraid that the tech giants have been able to avoid taxes in Europe. In addition, French minister Bruno Le Maire called the US threat to impose tariffs in response to the tax “unacceptable”. He also suggested that France should be ready to retaliate.
Italy To Grant Funds To Keep Alitalia Up
Italy plans to free up funds for airline Alitalia as they struggle to gain investors in Rome. Currently, Alitalia will run out of money by the end of the year. However, Italy plans to give the airline a $441M loan. Alitalia previously received a 900 million euro loan, and has yet to repay it or the 150 million euro interest it has accrued.